Drop in Chinese demand dents Sibur's rubber output

ERJ staff report (PRW)

Russian petrochemicals group Sibur Holding reported a 13 percent drop in rubber production to 480,000 tons in the past year, blamed on a dramatic fall in export demand, especially from China.

In contrast, the Moscow-based company recorded a 7 percent rise in polymer production through 2008 from 501,000 tons to 537,000 tons, but warned that it expects the ill-effects of the global downturn to be felt more widely during 2009.

"In view of the significant deterioration of the pricing environment and a drop in demand for the company's products in the second half of 2008, we anticipate a decrease in utilisation levels in the current year,” said Sibur president Dmitry Konov in a statement.

Overall, the group recorded a 7 percent rise in the output of petrochemical products to 14,791 tons last year. But it is continuing to monitor market movements, and, according to Konov, will pursue its current "large-scale cost reduction programme" to improve the firm's performance and to maintain its market share.

From PRW.com (A Crain publication)

Press release from Sibur